Latest news with #DMFs
Hindustan Times
30-07-2025
- Business
- Hindustan Times
Govt collected ₹1 lakh crore in DMF funds since 2015: Mines minister tells Lok Sabha
The central government has collected ₹1,09,423 crore from across the country under the District Mineral Foundations (DMFs) since 2015, of which Rs.91,514 crore, or 83%, have been allocated to various projects sanctioned under DMFs, the ministry of mines informed the Lok Sabha on Wednesday. Union minister G Kishan Reddy speaks in the Lok Sabha on Wednesday. (Sansad TV) Minister of mines G Kishan Reddy said the DMF operates as a non-lapsable fund and unspent balances continue to be part of the cumulative fund available with each DMF Trust; he also provided details of DMF funds disbursed state-wise. Reddy was responding to questions raised by Shiv Sena MP Shrirang Appa Chandu Barne on: 1. the total funds accrued in all DMFs across the country till date and the corresponding amount utilised, state-wise particularly in Maharashtra; 2. the percentage of unutilised funds and the primary reasons identified for this significant underutilisation; 3. whether the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) guidelines mandate specific percentages for high-priority sectors (e.g. drinking water, healthcare, education), among others. Under PMKKKY, a welfare scheme aimed at improving the lives of people and areas affected by mining activities, at least 70% of DMF funds must be utilised in high-priority sectors such as drinking water, healthcare, education, etc. and up to 30% of DMF funds should be utilised under other-priority sectors, i.e., physical infrastructure, irrigation and energy and watershed development. Till date, eight states have incorporated the PMKKKY guidelines, 2024, in their state DMF rules. Odisha has collected ₹31,323.53 crore as DMF so far followed by ₹15,402.43 crore by Chhattisgarh and ₹13,791.40 crore by Jharkhand, according to the response. 'The guidelines also provide that the account of the DMF shall be audited by the Comptroller and Auditor General (CAG) as per schedule decided by CAG. Further, as per the Guidelines, a State Level Monitoring Committee (SLMC) shall be constituted at the State level under the chairpersonship of the Chief Secretary to monitor the performance of DMFs and compliance of transparency norms, audit and annual report of DMFs,' Reddy said. Through the amendment in Mines & Minerals (Development & Regulation) (MMDR) Act, in 2015, the Centre has made provisions for the establishment of DMF in all the districts affected by mining. Accordingly, Section 9(B) of the MMDR Act provides for the establishment of DMF as a non-profit body, object of DMF, with the power of the state government to prescribe its composition and functions. The object of the DMF is to benefit areas affected by mining related operations in such a manner as may be prescribed by the state government. This also includes mitigating the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts. So far, DMFs have been set up in 645 districts in 23 states in the country that have framed DMF rules. DMFs are funded from a share of royalty paid by mining companies and varies based on the type of mineral they extract and when they were granted their mining lease.
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Business Standard
09-07-2025
- Business
- Business Standard
Centre launches targeted DMF push for aspirational districts initiative
The Union Ministry of Mines on Tuesday launched a focused programme to align District Mineral Foundation (DMF) funds with India's Aspirational Districts initiatives, marking a major shift toward targeted welfare delivery in mining-affected regions. Union Coal and Mines Minister G Kishan Reddy announced that DMFs currently hold over Rs 32,000 crore in Aspirational Districts. He directed district collectors to ensure impactful and timely utilisation of these funds. Speaking at the National DMF Workshop organised in New Delhi, Reddy urged states to implement the new DMF–Aspirational Districts convergence programme in '100 per cent saturation mode' across key areas such as health, nutrition, education, agriculture and rural infrastructure. 'District collectors have to prepare an action plan and spend the funds on impactful projects in a time-bound manner,' the minister said. The Centre's push for convergence seeks to align DMF planning and implementation with central flagship schemes such as Jal Jeevan Mission, Ayushman Bharat and the Pradhan Mantri Awas Yojana, in line with guidelines under the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY). 'DMF has to be seen as a development mission,' said Reddy. Through project status tracking, transparency will be ensured. With forest-based livelihood investments, DMF implementation must advance inclusive and sustainable development, he added. Highlighting India's broader developmental trajectory, the minister noted that between 2011 and 2023, over 17 crore people came out of extreme poverty. Today, India is not only the fourth-largest economy in the world but also the fourth most equal country globally, he said. This change, he added, is the result of inclusive development initiatives launched over the last 11 years. The establishment and vision of DMFs reflect those efforts. The Union minister said over Rs 1 trillion has been deposited in DMFs since their inception, following the 2015 amendment to the Mines and Minerals (Development and Regulation) Act. Of this, Rs 90,000 crore has been allocated toward various development projects. However, Reddy also flagged serious implementation concerns. 'In many states, funds have been allocated, but projects remain incomplete. DMF funds are being transferred from the affected districts to others,' he said, urging officials to strictly follow guidelines and ensure the funds benefit directly impacted communities. Mine closures Addressing mine closure issues, the minister revealed that although 143 coal mines have been decommissioned, closure activities remain pending. 'District collectors must take responsibility. You must catch the company and ensure that closure work is implemented. For the first time, the government is itself spending money on mine closures,' he said. The workshop, held at the Scope convention centre in New Delhi, brought together state nodal officers, DMF district representatives, and officials from various ministries. The event also saw the launch of operational guidelines for the convergence of DMF with the Aspirational Districts and Aspirational Blocks Programme. Simultaneously, an exhibition of Self-Help Group (SHG) products supported by DMF funds was inaugurated at Handloom Haat, Janpath, where women from mining-affected districts showcased their work. The exhibition will remain open to the public till July 15.
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Business Standard
09-07-2025
- Business
- Business Standard
Centre launches targeted DMF push of ₹32,000 cr for aspirational districts
The Union Ministry of Mines on Tuesday launched a focused programme to align District Mineral Foundation (DMF) funds with India's Aspirational Districts initiatives, marking a major shift toward targeted welfare delivery in mining-affected regions. Union Coal and Mines Minister G Kishan Reddy announced that DMFs currently hold over Rs 32,000 crore in Aspirational Districts. He directed district collectors to ensure impactful and timely utilisation of these funds. Speaking at the National DMF Workshop organised in New Delhi, Reddy urged states to implement the new DMF–Aspirational Districts convergence programme in '100 per cent saturation mode' across key areas such as health, nutrition, education, agriculture and rural infrastructure. 'District collectors have to prepare an action plan and spend the funds on impactful projects in a time-bound manner,' the minister said. The Centre's push for convergence seeks to align DMF planning and implementation with central flagship schemes such as Jal Jeevan Mission, Ayushman Bharat and the Pradhan Mantri Awas Yojana, in line with guidelines under the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY). 'DMF has to be seen as a development mission,' said Reddy. Through project status tracking, transparency will be ensured. With forest-based livelihood investments, DMF implementation must advance inclusive and sustainable development, he added. Highlighting India's broader developmental trajectory, the minister noted that between 2011 and 2023, over 17 crore people came out of extreme poverty. Today, India is not only the fourth-largest economy in the world but also the fourth most equal country globally, he said. This change, he added, is the result of inclusive development initiatives launched over the last 11 years. The establishment and vision of DMFs reflect those efforts. The Union minister said over Rs 1 trillion has been deposited in DMFs since their inception, following the 2015 amendment to the Mines and Minerals (Development and Regulation) Act. Of this, Rs 90,000 crore has been allocated toward various development projects. However, Reddy also flagged serious implementation concerns. 'In many states, funds have been allocated, but projects remain incomplete. DMF funds are being transferred from the affected districts to others,' he said, urging officials to strictly follow guidelines and ensure the funds benefit directly impacted communities. Mine closures Addressing mine closure issues, the minister revealed that although 143 coal mines have been decommissioned, closure activities remain pending. 'District collectors must take responsibility. You must catch the company and ensure that closure work is implemented. For the first time, the government is itself spending money on mine closures,' he said. The workshop, held at the Scope convention centre in New Delhi, brought together state nodal officers, DMF district representatives, and officials from various ministries. The event also saw the launch of operational guidelines for the convergence of DMF with the Aspirational Districts and Aspirational Blocks Programme. Simultaneously, an exhibition of Self-Help Group (SHG) products supported by DMF funds was inaugurated at Handloom Haat, Janpath, where women from mining-affected districts showcased their work. The exhibition will remain open to the public till July 15.
Time of India
09-07-2025
- Business
- Time of India
Assessing impact of US copper tariffs: Mines Minister G Kishan Reddy
India is assessing the impact of US President Donald Trump's tariffs on copper exports to the United States, Union Coal and Mines Minister G Kishan Reddy said Wednesday. Officials said impact of Trump's 50% import tariff on copper will be minimal since India's domestic demand is robust. According to sector watchers, Trump's tariffs raise the risk of cross dumping copper from other markets, driving down prices and threatening profitability of domestic producers. 'We are examining the impact of these tariffs on the copper exports,' Reddy said. Copper price on the London Metal Exchange (LME) has fallen from a high of $ 10,119 per tonne last week to $ 9,893 a tonne Wednesday. But copper futures in the US jumped over 10% to $5.682 a pound. Sector watchers said there is a global rush to make copper reach American shores before Trump's August 1 deadline for tariffs kicking in. Trade from Chile and Canada is expected to be most affected. 'India is a copper-deficient country, and its export is not significant. Of the total exports, the shipment to the USA is just around 30 tonnes,' said Mayur Karmarkar, Managing Director, International Copper Association India. India annually consumes roughly 1.7 million tonnes copper. Karmakar said India's domestic demand is extremely buoyant, given the thrust on renewable energy, electric vehicles (EVs), and a host of other copper-intensive sectors. 'Copper consumers in the USA will be most impacted because more than 50% of their requirement is met through imports,' a domestic industry representative said while adding less than $ 300 million worth copper is exported to US from India. Subhead: Monitoring of mining funds Reddy was speaking at National District Mineral Foundation (DMF) Workshop. Mining companies contributing between 10 to 30 percent of their royalty proceeds towards these funds since 2015 onwards. According to official estimates, over Rs 1.09 lakh crore crore has been collected under DMFs till date with Rs 90,000 crore being sanctioned. 'DMF fund utilisation will be monitored through project status tracking which will bring transparency,' Reddy added. This comes after reports of DMF expenditure not being very well managed in some states.
Indian Express
11-06-2025
- Business
- Indian Express
India's just transition will have to balance growth, coal, and climate commitments
Written by Bhaskar Vira and Shashi R Singh India, poised to become the world's fourth fastest growing economy, stands at a crucial intersection. The dual challenges of development and decarbonisation are central to India's political economy. As the nation aspires to position itself as a global power, it must do so while navigating the climate emergency that is no longer distant—it is here, and it is urgent. The recurring heatwaves and extreme rainfall across the country are not isolated incidents; they are signalling that climate disruption is now a lived reality. The question is: How can India sustain economic growth while advancing toward its climate commitments? This dilemma is particularly acute in the context of the country's coal-bearing regions, which have historically powered the economy but now face the brunt of transition pressures. Energy security and the coal equation India is the world's third-largest consumer of fossil fuels, and coal continues to dominate the country's energy mix, contributing roughly 55 per cent of total energy and 74 per cent of domestic electricity production. The fiscal year 2024–25 marked a milestone as India crossed the 1 billion tonne coal production threshold — a 5 per cent increase over the previous year. This milestone came with substantial gains: Reduced coal imports by 8.5 per cent, forex savings of Rs 42,315 crore, and revenue contributions exceeding Rs 70,000 crore. Coal also sustains over 2.4 lakh formal jobs and supports millions more indirectly in the coal-bearing districts. Despite India's commendable renewable energy (RE) capacity — over 220 GW installed — coal remains the critical base load provider. India plans to add another 90 GW of coal capacity by 2032, highlighting the complex interplay between meeting industrial demand and adopting cleaner energy technologies. Beyond the mines: Just transition imperatives But this production milestone is also a signal — it's time to prepare for what comes next. The coal-bearing districts that have supported national development for decades must now be positioned for an inclusive and sustainable economic future. Since 2015, District Mineral Foundations (DMFs) have addressed the immediate socio-economic needs of mining-affected communities. However, District Mineral Foundations lack long-term vision — particularly around inter-generational justice. Models like the Alberta Heritage Fund or Alaska Permanent Fund show how early financial planning can prepare regions for post-extraction futures. Coal-rich districts need more than short-term compensation. They need comprehensive policy packages — tax incentives, investment stimuli, and strategic repurposing of mining infrastructure. Currently, many of these regions lack both renewable energy (RE) potential and renewable energy manufacturing investments. None of the top 15 solar component manufacturing units are in these states or districts. This geographical disadvantage has left eastern and central India behind, while renewable energy-related jobs and infrastructure flourish in the southern and western states. Regional inequality and federal dynamics Roughly 77 per cent of India's coal reserves are concentrated in 35 districts of Madhya Pradesh, Chhattisgarh, Jharkhand, and Odisha — states that have long fuelled national growth but remain economically fragile. Many of their coal districts rank high on the multidimensional poverty index as per Niti Aayog and are home to large Adivasi populations. These regions are economically dependent on coal and deserve procedural and distributive justice in the energy transition. These districts cannot be expected to undergo an energy-to-energy transition alone. Instead, the shift must be systemic. One promising idea is to transform these areas into Special Economic Zones (SEZs) with a focus on green industrialisation, not just energy. India's 2005 Special Economic Zones policy largely benefited IT sectors, but the potential for manufacturing led growth — especially in post-mining zones — remains untapped. Repurposing unused mining land for environmentally and socially aligned industries can create sustainable jobs, reduce land acquisition pressures, and maintain local economic dynamism. Global examples abound, and India must tailor such transitions to its own context. Managing mine closures and skill transition India must also prepare for the lifecycle end of coal mines and thermal power plants. Decommissioning offers valuable lessons but India needs to craft its own pathway. It impacts local ecosystems, public health, employment, and land use. Frameworks like the Coal Bearing Act, Mining Closure Guidelines, Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR) and Forest Conservation Act already offer regulatory scaffolding, but they need clearer implementation pathways focused on repurposing land for public good. New skills must be cultivated to support emerging sectors. A smooth employment transition requires retraining and education tailored to regional strengths — not just green energy but broader manufacturing, logistics, and services. Justice across scales India's energy transition must be seen through multiple lenses: Global (developed vs developing countries), national (wealthy vs poor regions), social (rich vs poor communities), and generational (current vs future citizens). Per capita emissions don't capture these nuances; policy must instead recognise differentiated responsibilities and capacities within Indian society. States like Jharkhand have already formed dedicated Just Transition Task Forces. Others must follow suit, integrating social safeguards, revenue substitution models, and regional industrial strategies into broader state development plans. Financing the transition Climate finance will be critical. Domestic funding windows through CSR, Compensatory Afforestation Fund Management and Planning Authority (CAMPA), and District Mineral Foundations, are more in control and dependable sources. The last 10 years of CSR and District Mineral Foundation collections have shown impressive contributions of approximately USD 17 billion and USD 11 billion respectively. The existing challenges remain with the 56 per cent unspent District Mineral Foundation funds. Unlocking their potential, alongside mechanisms like environmental fiscal transfers and blended finance, can catalyse regional transition plans. The 16th Finance Commission could play a transformative role by aligning transfers with climate and environmental performance. International finance must also play its part. South Africa's Just Energy Transition Investment Plan, backed at COP26, serves as an example of the scale of external support needed. India will require similar commitments, particularly for its coal belt transformation. The Indian government's taxonomy for climate finance could bring focused interventions. Linking it to sectoral policies will further embed just transition into the national development agenda. Road ahead India's 2070 net zero target is the larger backdrop. But the pathway to Viksit Bharat 2047 depends on how the country manages its energy shift today. The transition must balance the four Es: Economy, Energy, Environment, and Employment. For this, state governments must be empowered as transition architects. They are best placed to lead stakeholder engagement, land-use planning, and region-specific economic diversification. Planning for this transition is now a necessity. India's coal-bearing districts have long powered the nation's rise. Now, they must be empowered to reimagine their own future. Vira, is pro vice chancellor for Education & Environmental Sustainability at the University of Cambridge and professor of political economy at the Department of Geography. Singh is fellow at the Department of Geography, University of Cambridge, and works actively on land governance, just transition and socioeconomics issues in coal-bearing states
